As a kid in rural Alabama in 1975...the top brand of tennis shoe sold was Chuck Taylor basketball type shoes, and typically (at least at K-Mart), they ran for about $12 to $15. In today's rate....that $15 is really $72.
I admire capitalism at times because it presents thousands of scenarios which should be simply fantasy....but actually come true.
So you'd go to a local tennis shoe shop (something that didn't exist in 1975), and the 'glamour' top brand of tennis shoe is some Nike XYZ tennis shoe, which runs in the $135 to $150 range. If you did the math....in 2045, this value would be $500.
Is it really worth the $135? By the time you figure up the raw material...you've got a shoe manufactured by a low-end employee either in Vietnam or China. That 'build' value is probably in the neighborhood of $30 (manpower included). Then you throw in the box....shipping....more shipping from the US port, and staging at the US store (figure around $20). Profit margin for Nike? Probably $25 per shoe. Then you have the local store (rental costs are significant), their profit and then advertising....that's up around $60.
You kinda feel silly at this point....the set of shoes ought to be nearer $50...not $135.
The alternate shoes? The ones for $75? You are basically buying a set of the same quantity but name-brand-wise....they aren't labeled with 'Nike'. You didn't pay for advertising with the alternate shoes. That million-dollar contract with the fake NFL football player? The alternate guys wouldn't be that stupid....they wouldn't dare go out and hire some 2-star ex-quarterback to front their shoe.
The amusing thing in this discussion....that pair of Chuck Taylor shoes from 1975? They'd last two or three years and usually get glued-up at least once...to repair them back to use. Today? The first time that any issue comes up....you'd dump the shoe and throw $135 out for a brand new pair.
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